MM Configuration: Define Plant Step-by-Step SAP Material Management (MM) Configuration: Define Plant This post will explain a step by step SAP MM configuration of how to define a plant in an SAP client. A plant is the place of production, or branch of a company, or simply a collection of several locations of material stocks in close physical proximity. A plant is represented by a client-unique 4-digit alpha-numeric. Plant is used in Material Management (MM), Production Planning (PP), Sales and Distribution (SD), and Plant Maintenance (PM) module. A plant is assigned to one company code. One company code can have more than one plant. One Business Area is assigned to plant. Several plants can have same business area. We can define Plant in a SAP R/3 client with T-code: SPRO. SAP Screenshots of How to define a plant are: Go to the menu: IMG – Enterprise Structure – Definition – Logistic-General – Define, Copy, Check, Delete Plant: The above image is © SAP AG 2010. All rights reserved Click Execute button, the next screen is: The above image is © SAP AG 2010. All rights reserved Select “Define Plant” if we want to create a plant from the scratch, or select “copy, delete, check plant” if we want to copy a plant from an existing plant. In this example we will create a plant from the scratch. The next screen is: The above image is © SAP AG 2010. All rights reserved Click “New Entries” button. The next screen is: The above image is © SAP AG 2010. All rights reserved Fill the Plant code that we want to create (client-unique 4-digit alpha-numeric) in the plant field. Then click “address” icon. The next screen is: The above image is © SAP AG 2010. All rights reserved Fill the required field as above image, and click “OK” button or press “Enter”. The next screen is: The above image is © SAP AG 2010. All rights reserved Click the “save” button. And the next screen is: The above image is © SAP AG 2010. All rights reserved The GC01 plant has been created. Then we need to assign this plant to a company code and business area. SAP Study Materials Series e-Book To get more details on SAP Enterprise Structure, you can buy my e-book (50 pages .pdf file) at SAP Study Materials Store. The e-book explains in details about the SAP Enterprise Structure (MM and related modules such as FI, Logistics, and SD) Concept and Configuration Guide. Just like other articles on my SAP Study Materials blog, I wrote the e-book in a simple-to-understand way, so you can learn it easily. You don’t need to have extensive SAP knowledge and experience to be able to configure the SAP Enterprise Structure, as the e-book start explaining each step with the basic concept behind it. After understanding the concept, the e-book will show the step-by-step configuration with the screen shots.

Maintaining Vendor Master Records Use If you wish to store information on your vendors in the SAP System, the following functions are available: Create vendor master record Change vendor master record Block vendor master record Use one-time vendor Display list of vendors Procedure Create Vendor Master Record Choose Master data Vendor Central Create from the Purchasing menu. Enter the purchasing organization and an account group. If you want to use another vendor master record as a reference, enter the account number of that vendor in the Vendor (creditor) field (under Reference). Press ENTER . The Create Vendor: Address screen appears. Enter the address and press ENTER . The Create Vendor: Control screen appears. On this screen, enter the accounting data needed by the payment and dunning program, and data for declarations to the tax authorities. Also populate the Debtor (customer) field where necessary (the data in this field is needed in the case of deliveries to the vendor in connection with Returns and Subcontracting Components. Press ENTER and enter the necessary data on the subsequent screens that appear. On the Purchasing Data screen, enter purchasing-specific data such as the order currency or the key for the terms of payment and then press ENTER . You can record the Terms of Payment that you agree with a vendor in the vendor master record. They automatically appear as default values in any purchase orders created for the vendor in question; however, you can change them as needed. Terms of payment can also be entered in the vendor's invoice. These are then applied by the payment program. The Create Vendor: Partner Roles (partner functions) screen appears. Maintain the necessary partner roles on this screen. (See Partner Roles in Purchasing.) Click to save the vendor master record. Change Vendor Master Record Choose Master data Vendor Purchasing ® Change. Enter the vendor number and the purchasing organization, and select the data you wish to change. Press ENTER . Enter your changes and click to save your input. Block Vendors Suppose you would like to prevent further deliveries from a vendor who has supplied goods of poor quality. You can freeze or "block" the vendor account in the vendor master record. Once you have set the blocking indicator in the vendor master record, purchase orders can no longer be placed with this vendor. The "blocked" status for the vendor applies until such time as you cancel the blocking indicator. To block a vendor, proceed as follows: Choose Master data ® Vendor ® Purchasing ® Block. Enter the vendor number and the purchasing organization. Then press ENTER . A screen appears, on which you can indicate whether the vendor is to be blocked for a specific purchasing organization or for all purchasing organizations. If QM is active within the procurement function, you can impose a block for quality reasons. (See the documentation Quality Management (QM) Overview of Procurement Activities) Click to save your input. You can block a vendor for an individual material via the source list. For more information, refer to the section Optimized Purchasing. Use One-Time-Vendor You can create special vendor master records for vendors from whom you procure goods only once or rarely, so-called One-Time Vendor Master Records. For example, suppose you order goods from a vendor with whom you usually do not place orders, because your main vendor was not able to supply the required items. In this case, you would use a "one-time vendor" master record. In contrast to other master records, a "one-time vendor" master record is used for several vendors. The purpose of this is to avoid the unnecessary creation of an excessive number of individual vendor master records. For this reason, you may not store any vendor-specific data in a "one-time vendor" master record. When creating a "one-time vendor" master record, you must assign a one-time account group. This account group determines that the vendor-specific fields are suppressed. You don’t need to enter this data until the time a purchasing document (e.g. a PO) is created. When you create a purchasing document with a one-time vendor, you will be asked to enter the vendor address. Enter the vendor’s name and address. Like all other master records, you can display, block, or delete one-time vendor master records. Display List of Vendors You can create a list of different vendors. This list contains important information on individual vendors: the purchasing organizations for which material was procured from a vendor, the terms of payment, and the blocking status of the vendor, for example. Choose Master data ® Vendor ® List displays, then Purchasing list. Enter your selection criteria and run the analysis.

Parameters Syntax PARAMETERS name(length) [TYPE type or LIKE obj] DECIMALS d. Examples PARAMETERS: char1(20) TYPE C, date1 LIKE SY-DATUM, number1 TYPE P DECIMALS 2. Options DEFAULT Example: PARAMETERS p1(5) TYPE C DEFAULT ’we’. MEMORY ID Example: PARAMETERS p2(5) TYPE C MEMORY ID pid. LOWER CASE Example: PARAMETERS f1(10) LOWER CASE. VISIBLE LENGTH Example: PARAMETERS f1(10) TYPE C VISIBLE LENGTH 4. OBLIGATORY Example: PARAMETERS f1(10) TYPE C OBLIGATORY. MATCHCODE OBJECT Example: PARAMETERS p_belnr LIKE BKPF-BELNR MATCHCODE OBJECT zsh_f4_belnr. VALUE CHECK Example: PARAMETERS p_belnr LIKE BKPF-BELNR OBLIGATORY VALUE CHECK. AS CHECKBOX Example: PARAMETERS: c1 AS CHECKBOX DEFAULT ’X’. RADIOBUTTON GROUP Example: PARAMETERS: r1 RADIOBUTTON GROUP rad1 DEFAULT ’X’, r2 RADIOBUTTON GROUP rad1, r3 RADIOBUTTON GROUP rad1. NO-DISPLAY Example: PARAMETERS: f1(10) TYPE C NO-DISPLAY. MODIF ID Example: PARAMETERS: f1(10) MODIF ID GR1.

SAP System Landscape:
(Kind Note: In this post i going to give a short hint about SAP system landscape don't consider this as a SAP Architecture. Often
times, SAP users, especially new comers misunderstands these two concepts.)
They system landscape basically is the set-up or arrangement of your SAP servers. Ideally, in an SAP environment, a three-system
landscape exists. A three-system landscape consists of the Development Server-DEV, Quality Assurance Server-QAS and the
Production Server-PROD. This kind of set-up is not primarily designed to serve as server clusters in case of system failure, the
objective to enhance "configuration pipeline management".
A Typical SAP Three-System Landscape would consist of one or two development system ==> one Quality system ==> Production
system. (but it is not must to keep separate server for each systems, you can configure DEV & QAS on a same server but it is
not advisable to keep PROD too in the same server)
Pipeline is the environment where the configuration in the development system is moved to the quality assurance system and finally
to the production system. The whole idea is to sync the configuration of these systems at any point in time.
Devlopment/configuration/changes are first made in the Development system, thoroughly tested in the Quality Assurance system
then loaded into the production system. TMS Does this process nicely. Transport management system is the coordination of the
movement of objects and configuration changes from the development system to the Quality Assurance system and then to the
Production system.

Teknath Bera

Teknath Bera

SAP MM module

SAP MM is the materials management module of the SAP ERP software package from SAP AG that is used for Procurement Handling and Inventory Management. Materials management is integrated with other modules such as SD, PP and QM. Materials management is used for procurement and inventory management.

The module has two important master data - material and vendor. Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization.

SAP Materials management covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification. It also includes inventory and warehouse management to manage stock until usage dictates the cycle should begin again. Electronic Kanban/Just-in-Time delivery is supported.

It can be divided into five major components. There are: materials management, plant maintenance, quality management, production planning and control, and a project management system. Each is divided into number of subcomponents.

SAP MM is all about managing the materials i.e the resources of an organization. These resources include man, manpower and materials. The main functionality within MM includes purchasing, Inventory management, valuation and assignment, batch management and classification
SAP MM Module :

SAP MM is the materials management module of the SAP ERP software package from SAP AG that is used for Procurement Handling and Inventory Management. Materials management is integrated with other modules such as SD, PP and QM. Materials management is used for procurement and inventory management.

The module has two important master data - material and vendor. Broadly, the various levels that can be defined for a SAP MM implementation are: Client, Company Code, Plant, Storage Location and Purchase Organization.

SAP Materials management covers all tasks within the supply chain, including consumption-based planning, planning, vendor evaluation and invoice verification. It also includes inventory and warehouse management to manage stock until usage dictates the cycle should begin again. Electronic Kanban/Just-in-Time delivery is supported.

It can be divided into five major components. There are: materials management, plant maintenance, quality management, production planning and control, and a project management system. Each is divided into number of subcomponents.

SAP MM is all about managing the materials i.e the resources of an organization. These resources include man, manpower and materials. The main functionality within MM includes purchasing, Inventory management, valuation and assignment, batch management and classification

MM Process Flow

MM - Process Flow

Determination of Requirements
The user department responsible is manually passing a requirement for materials to the purchasing department via Purchase Requisition. Purchase requests are generated when business runs the MRP and Request are also generated based in Consumption based planning (CBP) for Production and Engg.Stores.
Determination of Source of Supply
The purchasing component helps the buyer determine the sources of supply. User use the determination of the source of supply to create Requests for quotation (RFQs) and then to enter quotations. User is accessing the existing Purchase Orders and Conditions in the System.
Vendor Selection and Comparison of Quotations
The System is capable of simulating pricing scenarios and simplifies the selection of vendors by making price comparisons between the various quotations.
Purchase Order Processing
The purchasing system adopts information from purchase requisition and the quotation to help to create Purchase Orders. They are also creating manual purchase order directly for stock, non-stock items, services etc.
Purchase Order Monitoring
The buyer monitor the processing status of the purchase order online at any time and determine whether goods or an invoice have been received for the relevant purchase order item.
Goods Receipt and Inventory Management
The Goods receiving requester confirms the receipt of the materials by simply entering the Purchase Order Number. The system compares the goods receipt quantity with the purchase order quantity. By specifying permissible tolerances, buyers can limit over deliveries and under deliveries of ordered materials.
PURCHASING
Purchasing Functionality is integrated with Inventory Management and Invoice Verification within MM.